charte Paris Europlace V5b

Document Sample
charte Paris Europlace V5b Powered By Docstoc

                        Paris EUROPLACE 2005
                            Financial Forum
                             Tokyo - November 29, 2005

                  Daniel Scolan
    Executive Vice President Investor Relations
               VIVENDI UNIVERSAL


First class assets and leading brands
                                                                French GAAP
VU is among the leaders in its different markets:               Comparable basis
                                                                2004 figures

                 World’s leading music company
                 Revenues: €4,993m, Operating Income: €338m

                 World’s leading on-line games company
                 Revenues: €475m, Operating Income: €(183)m but positive in ‘05

                 France’s leading pay-TV network & satellite platform
                 Revenues: €3,470m, Operating Income: €184m
                 (8m subscribers as of end-September ‘05)

                 France’s 2nd operator of mobile telecommunications
                 Revenues: €8,317m, Operating Income: €2,257m
                 (16.5m subscribers as of end-September ‘05)

                 Morocco’s leading telecommunications operator
                 Revenues: €1,658m, Operating Income: €682m
                 (8.3m mobile customers as of end-September ’05)
                 (1.35m fixed lined & 179,000 DSL customer as of end-September’05)
VU Operates Leading Media & Telecom Assets

 Music            Video              TV / Film              Film   Pay-TV      Mobile /      Mobile /
                  Games                                                        Fixed line    Fixed line
   92%                99%                 20%*              100%     100%         56%              51%


                    Global Content                                  Local Distribution Platforms
* 20% controlling interest and a 18.5% ownership interest
Vivendi Universal Today

A coherent group in global content and local distribution platforms:

     33 000 employees

     Revenues of approximately €19 billion

     Net income and recurring net cash flow of about €2 billion in the future

     Market capitalization of about €30 billion

        10th largest in France

        34th largest in Europe

     4th most active stock in Paris Stock Exchange in October 2005

Vivendi Universal is in Great Shape

Focus on business operations: growth, profitability, development;

Investment is growing in content creation, telecom infrastructure
and distribution platforms;

The financial restructuring is now complete;

A handful of reasonable acquisition targets;

Excellent earnings visibility for the group;

Vivendi Universal is able to combine growth and cash returns.

  All VU businesses are profitable and growing
On a comparable basis
   Strong operating performance in the 9 months 2005:
      Revenues:                + 8% to € 13,960 million;
      EFO:                     + 24% to € 2,971 million;
      Adjusted Net Income:     + 73% to € 1,687 million.

                                  Revenues                    EFO
                                  9m 2005           9m 2005     9m 2004
    Universal Music Group:     €3,211m   +3%         €213m           €95m
    Vivendi Universal Games:    €396m +88%            €20m          (€200m)
    Canal + Group:             €2,515m   +3%         €267m          €294m
    SFR                        €6,475m   +8%       €2,032m      €1,844m
    Maroc Telecom              €1,380m   +14%        €565m          €512m
9 months 2005 revenues by business                                     7

French GAAP
In millions of euros
On a comparable basis

   9 months 2005 revenues: €13,960 m                            + 8%

                        9 months 2005 Revenues by business* (in €m)
                                 Telecom        Canal+ Group
                                 €1,380 m         €2,515 m
                                    10%             18%

                                                     €3,211 m
                               SFR                     23%
                             €6,475 m             VU Games
                              46%                  €396 m
Vivendi Universal’s 2005 Guidance
as updated on September 13, 2005
      Vivendi Universal will exceed its 2005 Adjusted Net Income
              growth target announced at the 2005 AGM

 In IFRS                                  > €1,800 m
 In millions of euros

                        €1,330 m

  EPS from                                              … to above
   €1.16 …                                                 €1.57

   DPS of                                                … at least
   €0.60 …                                              50% payout
                          2004               2005
Vivendi Universal is positioned on growing
markets in usage

  Explosion of usage…
       Increasing level of music consumption;
       Explosion of Online and mobile video games;
       Trend in TV consumption habit geared towards multi channel;
       Constant increase in voice minutes and data traffic on mobile telephony

  … despite regulatory pressure on prices…

  … and with an expected reduction in piracy:
    2005 the turning point?
    (Grokster closed its operations on November 7, 2005)
Focused on investing in quality content
Universal Music Group:
       Continuous investment in Artist & Repertoire (A&R) to expand into new genres, identify emerging
       talent and develop new artists;
       Develop and acquire music publishing catalogs and publishing rights.

Vivendi Universal Games:
       Investment in Blizzard and Sierra to develop and publish new games;
       Acquisition of development studios: Swingin' Ape, Radical, Swordfish Studios;
       Creation of specific content for wireless games.

Canal+ Group:
       Acquisition of exclusive rights for the Canal+ Premium channel:
             Sport: French Soccer League, main European Soccer leagues, French rugby Top-14 …
             Cinema: 75% of top 30 in 2005 French Box Office and exclusive agreements with ¾ of major US studios
             (Universal, Sony / Columbia, Fox, Dreamworks…)
       StudioCanal: strong releases in movie co-production & distribution and benefice of the Working Title
       JV with Universal.

       Secured exclusive rights (Soccer, Music, TV) to attract 3G subscribers.
Broadband penetration creates new opportunities   11

within all our businesses and at their frontier
  Broadband increases value in content:
            download services & ringtones
            thematic channels

       Online Game: World of Warcraft

       Pay-TV: DSL & DTT offer

       Video on Demand: CANALPLAY

       New services on 3G networks: MMS,
       Mobile TV, mobile visiophony, 3D and
       multiplayer games…
 Mobility creates new opportunities                                                      12

 within all our businesses and at their frontier
                                                    SFR / CANAL+ Group:
                                Video phone       Launch of the world’s first Pay-TV
   Music                                            package over mobile phones

                                                                 SFR / UMG:
News                                TV
                                                         Strategic agreement
                                                       for the distribution of music
                                                     and video content over mobile

Games                        Corporate Services
                                                              Wireless Games:
                                                         Creation of a wireless mobile
                                                          division within VU Games

                                                    Verizon / UMG / amp’d mobile:
        Payment                Internet Acces      Launch of a music-focused MVNO
                                                   (amp’d mobile) on the US market
Each business benefits from                                                               13

being part of Vivendi Universal
Our businesses are distinct but benefit from strong complementary
     Quality and exclusivity of content drive growth on digital distribution platforms;
     Common key skill sets:
           Subscription management (SAC, churn, ARPU, CRM, …),
           Development of brands and talent,
           Content digitization,
           Intellectual property management;
           Innovation and customer care management.

Shared projects create competitive advantages:
     Time to market / Creation of new markets;
     Best practices in technology and marketing expertise;
     Incremental growth drivers.
Vivendi Universal:                                                 14

a good usage of content and distribution

                                    Creation and development of
 Content                  Content
                                    brands and talent

           Platform and             Marketing and distribution
            subscriber              networks, customer loyalty,
           management               interactive services

                                    Management of investment and
            Networks                technological innovation
A unique management philosophy                                        15

as a key advantage
VU’s management board is composed of the heads of VU’s
businesses: Music, Games, Pay TV, SFR, Maroc Telecom and Group CFO.

A strong management team:
   remarkable track record;
   focused on operating skills;
   incentivized on clear objectives: earnings and cash flow.

A collegial management able to:
   link operating people for cross fertilization;
   launch common projects at their initiative;
   create more value as a Group than each business would apart;
   leverage a handful of reasonable acquisition targets.
Growth Drivers                                                        16

for 2006 – 2008 are Already In Place
Digital distribution and new sources of music revenues:
   Digital distribution already accounts for 6% of total UMG sales

Exclusive premium content and launch of Pay-DTT:
   Launch of Pay-DTT in November in France

Development of World of Warcraft in new and existing markets:
   Already more than 4.5 million paying customers around the world

Mobile data services, 3G infrastructure, fixed-mobile substitution;

Mobile and DSL penetration in Morocco.

         Investing in content creation, telecom infrastructure
                       and distribution platforms

Vivendi Universal’s Key Advantages

Ability to outperform competition in each of VU’s markets:
   N°1 or N°2 in our key markets

Leverage strong and efficient partnerships through key alliances:
   Vodafone, GE, Kingdom of Morocco

Financial flexibility with which to build its future

No identified systemic risk

Sustainable and controlled development

Collegial management philosophy

       Vivendi Universal combines growth and cash returns
Vivendi Universal:                                                    18

A Commitment through Time
Vivendi Universal offers a unique combination of growth and cash
returns with a commitment to deliver in the future:

   €2bn Adjusted Net Income and €2bn net available cash flow;
   €1bn dividend payment (50% pay-out);
   A capacity to make reasonable acquisitions,

while maintaining a financial net debt level between €3bn and €6bn.

Vivendi Universal offers exposure to attractive businesses
benefiting from:
   global transition to broadband;
   achievements of mobile services.
     IR Team
                                                                Daniel SCOLAN
                                                           Executive Vice President
                                                              Investor Relations

                                                                                                                New York
                               Paris                                                                      800 Third avenue
                   42, Avenue de Friedland                                                             New York, NY 10022 / USA
                 75380 Paris cedex 08 / France                                                          Phone: +1.212.572.1334
                   Phone: +                                                              Fax: +1.212.572.7112
                    Fax: +

                        Laurence Daniel                                                                    Eileen McLaughlin
                          IR Director                                                                          IR Director

                       Edouard Lassalle
                           IR Analyst

For any financial or business information, please refer to our Investor Relations website at:

  Important Legal Disclaimer
This presentation contains "forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees
of future performance. Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many of which are outside our
control, including but not limited to, the risks that: the estimated levels of cash-flow and
revenues stated will not be realized; the synergies and other benefits associated with certain
transactions will not materialize; the anticipated reduction of Vivendi Universal’s
indebtedness will not materialize in the time period or manner described in the presentation;
Vivendi Universal will not be able to obtain the necessary approvals to finalize certain
transactions; Vivendi Universal will be unable to further identify, develop and achieve
success for new products, services and technologies; Vivendi Universal will face increased
competition and that the effect on pricing, spending, third-party relationships and revenues of
such competition will limit or reduce Vivendi Universal’s revenue and/or income; Vivendi
Universal will be unable to establish and maintain relationships with commerce, advertising,
marketing, technology, and content providers; Vivendi Universal will not be able to obtain or
retain, upon acceptable terms, the licenses and permits necessary to operate and expand its
businesses; as well as the risks described in the documents Vivendi Universal has filed with
the U.S. Securities and Exchange Commission and the French Autorité des Marché
Financiers (AMF). Investors and security holders may obtain copies of such documents free
of charge at and or directly from Vivendi Universal. Vivendi
Universal does not undertake, nor does it have any obligation to provide, update, or revise
any forward-looking statements.

Shared By: